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BackA debate in the European Parliament on the EU Budget revealed that the battle lines are drawn between Council and European Parliament. MEPs Reimar Böge and Ivailo Kalfin, competent co-rapporteurs for the EU financial framework for 2014 - 2020 did not mince their words. A new financial framework would only come about once the European Parliament had given its approval. They were not concerned that an agreement would not be reached: in this case, the 2013 Budget limit would apply and this would significantly exceed the limit many Member States in the Council had set for their national budgets.
MEP Böge of the European People’s Party declared that the agreement on the multiannual financial framework 2014-2020 had first to be adopted by absolute majority in the European Parliament, followed by the vote in the Council, which also had to be unanimous. Due to the stronger participation rights of the European Parliament, associated with the Lisbon Treaty, there were already discussions taking place with representatives of the Council. A team of negotiators of the European Parliament is regularly meeting members of the Council prior to the General Council sessions.
The rapporteurs showed little enthusiasm about the many contradictions between the official targets of the European Union and their reflection in the EU budget. According to Böge, € 130 billion more were needed to achieve the aimed at research quota of 3 % - this was almost the entire volume of the current annual budget. With regard to development policy, one was miles away from the target of investing 0.7 % in this sector. The EU 2020 agenda, which among other aimed at reducing poverty and unemployment, was also not adequately taken into account. And the abolition of the European Globalisation Fund (EGF) - a fund, which in certain cases makes payments to employees who have lost their job - would also not conform to the position of the European Parliament. A first interim report on the multiannual financial framework 2014-2020 shall be available in the European Parliament in early November.
According to the rapporteurs, controversial discussions were taking place in the Council. Several groups were pursuing different targets. There were, for example, the so-called Friends of Cohesion Policy, Friends of Agriculture and a coalition of countries that did not want to spend any money. Böge already told the Council in no uncertain terms that in case no agreement would be reached, the limits of the budgets of the last years would apply until a solution had been found. The limits for 2013 lie at 1.12 % of the Gross National Income (GNI), whilst the already cautious proposal of the European Commission only has 1.06 % of the GNI in mind. The Council had to make a reasonable offer, based on which the European Parliament would take its decision. Particularly needed was more flexibility regarding annual budgets and decisive progress concerning own resources.
From today’s point of view it is debatable whether the Council will be able to finalise its negotiations on the volume of the EU financial framework 2014-2020 by the end of the year. If the figures have still not been agreed by 2013, the implementation of the financial framework might be delayed. In view of the economic problems many Member States are faced with, it would be a bad sign if now also EU infrastructure projects could not be implemented on time.
The rapporteurs showed little enthusiasm about the many contradictions between the official targets of the European Union and their reflection in the EU budget. According to Böge, € 130 billion more were needed to achieve the aimed at research quota of 3 % - this was almost the entire volume of the current annual budget. With regard to development policy, one was miles away from the target of investing 0.7 % in this sector. The EU 2020 agenda, which among other aimed at reducing poverty and unemployment, was also not adequately taken into account. And the abolition of the European Globalisation Fund (EGF) - a fund, which in certain cases makes payments to employees who have lost their job - would also not conform to the position of the European Parliament. A first interim report on the multiannual financial framework 2014-2020 shall be available in the European Parliament in early November.
According to the rapporteurs, controversial discussions were taking place in the Council. Several groups were pursuing different targets. There were, for example, the so-called Friends of Cohesion Policy, Friends of Agriculture and a coalition of countries that did not want to spend any money. Böge already told the Council in no uncertain terms that in case no agreement would be reached, the limits of the budgets of the last years would apply until a solution had been found. The limits for 2013 lie at 1.12 % of the Gross National Income (GNI), whilst the already cautious proposal of the European Commission only has 1.06 % of the GNI in mind. The Council had to make a reasonable offer, based on which the European Parliament would take its decision. Particularly needed was more flexibility regarding annual budgets and decisive progress concerning own resources.
From today’s point of view it is debatable whether the Council will be able to finalise its negotiations on the volume of the EU financial framework 2014-2020 by the end of the year. If the figures have still not been agreed by 2013, the implementation of the financial framework might be delayed. In view of the economic problems many Member States are faced with, it would be a bad sign if now also EU infrastructure projects could not be implemented on time.